Form 1120 - Corporation Tax Return Engagement Letter

2016 Corporation Tax Engagement Letter

Page 2

respond to any audit or inquiry by tax authorities. You agree to hold harmless our firm and its

employees, or assigns with respect to any additional tax, penalties, or interest imposed upon you

by tax authorities resulting from the disallowance of tax deductions due to inadequate

documentation.

Personal expenses

You are responsible for ensuring that personal expenses, if any, are segregated from business

expenses and that expenses such as meals, travel, entertainment, vehicle use, gifts, and related

expenses are supported by necessary records required by the IRS and other tax authorities. At

your written request, we are available to provide you with written answers to your questions on the

types of supporting records required.

We will use our judgment to resolve questions in your favor where the tax law is unclear or where

there are conflicts between the taxing authorities' interpretation of the law and what seem to be

other supportable positions. There may be situations where we are required by law to disclose a

position on a tax return. We are not attorneys; therefore, we cannot provide you with a legal

opinion on various tax positions. We can, however, advise you of the consequences of different

positions. We will adopt whatever position you request on your returns so long as it is consistent

with our professional standards and ethics. In the event, however, that you ask us to take an

unsupported tax position or refuse to make any required disclosures, we reserve the right to

withdraw from the engagement without completing or delivering the tax returns. Such withdrawal

would complete our engagement and you agree to pay our fees based on time expended at our

standard rates plus all out-of-pocket expenses through the date of withdrawal.

Your returns may be selected for examination or audit by tax authorities. In the event of such

governmental tax examination, we would be pleased to represent you under the terms of a

separate engagement.

Your returns will be required to be filed electronically with the IRS. We will provide you with a copy

of your final returns for review prior to electronic transmission. The IRS requires that you sign an

e-file authorization Form 8879-C indicating that you have reviewed the return, it is correct to the

best of your knowledge, and you authorize us to submit it electronically. We cannot transmit any

return until we have the appropriate signed authorizations. E-filing of state returns vary by tax

authority. If e-file is not available, paper copies will be provided for you to sign and mail.

Our fees are payable upon delivery of the tax returns. We will not electronically file your tax

returns until our fees have been fully paid. You may terminate this engagement at any time.

Should you do so, however, we will request payment for any time incurred in the preparation of

your returns. We reserve the right to suspend our services or to withdraw from this engagement in

the event that any of our invoices are deemed delinquent, the guidance of our professional

standards, or for any other reason. 20% interest will accrue on any outstanding balance until it’s

paid in full. In the event that any collection action is required to collect unpaid balances due us,

you agree to reimburse us for the costs of collection, including attorneys' fees and court costs if an

action is filed. We will notify you in advance of any decision by us to withdraw, and will take all

reasonable steps to assist in the orderly transfer of your tax services. Otherwise, this engagement

will be considered complete upon acceptance of your e-filed returns by the tax authorities. In the

Form 1120 - Corporation Tax Return Engagement Letter - 2016 Page 2